Home
/
RELIGION & LIBERTY ONLINE
/
Trump and Clinton are wrong: free trade helps the poor
Trump and Clinton are wrong: free trade helps the poor
Jan 13, 2026 9:10 AM

Imagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. TheAmerican people would immediate reject such harmful economic policies,and politiciansknow they’d be rejectedfor makingsuch inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.

Purchasing power is the number of goods or services that can be purchased with a unit of currency. There are several methods politicians can use to reduce purchasing power, but one of the most subtle mon is to increase barriers to foreign trade. As Nita Ghei says,

The benefits of freer international trade accrue to consumers in theform of increased choice and lower prices. More imports mean more bang for the buck, and that effectively functions like an increase in pay. Consumers either buy imported goods directly, like the finished shirt from Bangladesh, or they can buy an American-made good that includes ponents. When American producers have access to cheaper imports, they can increase production, create jobs and offer goods at a lower price.

There is significant evidence that e Americans benefit substantially from imports, and higher trade barriers will impose a proportionately greater cost on the poor.

The poorest Americans tend to assume (mostly because they’ve been lied to by people that know better) that international trade hurts them. In fact, it is just the opposite, not only for those living in the U.S., but for the poor in almost every part of the world. As The Economist recently noted,

A study by Pablo Fajgelbaum of the University of California, Los Angeles, and Amit Khandelwal, of Columbia University, suggests that in an average country, people on high es would lose 28% of their purchasing power if borders were closed to trade. But the poorest 10% of consumers would lose 63% of their spending power, because they buy relatively more imported goods. The authors find a bias of trade in favour of poorer people in all 40 countries in their study, which included 13 developing countries.

If the lives of the poor are disproportionately improved by freer trade, then why do they so often oppose it? The main reason is because it’s much easier for them to see the negative effects of trade. If the factory you work at making widgets closes and the jobs move overseas, it’s easy to assume that the total economic effect is negative. What is more difficult to see is how many poor people are now able to buy widgets because they are being produced at a lower cost.

That is why protectionism has an innate appeal—it’s easy to see the effects—while free trade seems, well, foreign. Yet what many people don’t realize is that protectionism not only hurts the majority of consumers, it rarely helps the minority of workers it was intended to protect. As Ghei notes,

[P]rotectionist measures, like duties on steel, do little to halt the decline of that industry, which employs 140,000 people now, yet those duties inflict higher costs on steel-consuming industries, which employ over 12 million people.

Free trade is one of the few policies that almost all economists, whether on the left or right, agree is beneficial to the majority of the population. But economically ignorant politicians (see: Clinton and Trump) know that by championing protectionist policies (all while claiming that they are really for “free trade”) they can win the votes of people that don’t know better. That is why those of us who do know better have a duty to the poor to set the record straight. We can’t stop politicians from lying to them. But we can do our best to see that they discover the truth.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Peter 3:8-13   (Read 1 Peter 3:8-13)   Though Christians cannot always be exactly of the same mind, yet they should have compassion one of another, and love as brethren. If any man desires to live comfortably on earth, or to possess eternal life in heaven, he must bridle his tongue from wicked, abusive, or...
Verse of the Day
  Commentary on Today's Verse   Commentary on Ephesians 6:1-4   (Read Ephesians 6:1-4)   The great duty of children is, to obey their parents. That obedience includes inward reverence, as well as outward acts, and in every age prosperity has attended those distinguished for obedience to parents. The duty of parents. Be not impatient; use no unreasonable severities. Deal prudently and wisely with...
Verse of the Day
  Ecclesiastes 2:10-11 In-Context   8 I amassed silver and gold for myself, and the treasure of kings and provinces. I acquired male and female singers, and a haremThe meaning of the Hebrew for this phrase is uncertain. as well-the delights of a man's heart.   9 I became greater by far than anyone in Jerusalem before me. In all this my wisdom...
Verse of the Day
  Hebrews 4:12 In-Context   10 for anyone who enters God's rest also rests from their works,Or labor just as God did from his.   11 Let us, therefore, make every effort to enter that rest, so that no one will perish by following their example of disobedience.   12 For the word of God is alive and active. Sharper than any double-edged sword,...
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Peter 4:7-11   (Read 1 Peter 4:7-11)   The destruction of the Jewish church and nation, foretold by our Saviour, was very near. And the speedy approach of death and judgment concerns all, to which these words naturally lead our minds. Our approaching end, is a powerful argument to make us sober in all worldly...
Verse of the Day
  Commentary on Today's Verse   Commentary on Deuteronomy 30:15-20   (Read Deuteronomy 30:15-20)   What could be said more moving, and more likely to make deep and lasting impressions? Every man wishes to obtain life and good, and to escape death and evil; he desires happiness, and dreads misery. So great is the compassion of the Lord, that he has favoured men, by...
Verse of the Day
  Commentary on Today's Verse   Commentary on Psalm 32:8-11   (Read Psalm 32:8-11)   God teaches by his word, and guides with the secret intimations of his will. David gives a word of caution to sinners. The reason for this caution is, that the way of sin will certainly end in sorrow. Here is a word of comfort to saints. They may see...
Verse of the Day
  Commentary on Today's Verse   Commentary on James 1:19-21   (Read James 1:19-21)   Instead of blaming God under our trials, let us open our ears and hearts to learn what he teaches by them. And if men would govern their tongues, they must govern their passions. The worst thing we can bring to any dispute, is anger. Here is an exhortation to...
  An unexpected error has occurred. We are in the process of fixing the problem. Sorry. ...
Verse of the Day
  Commentary on Today's Verse   Complete Concise   Chapter Contents   Believers are to dedicate themselves to God. (1,2) To be humble, and faithfully to use their spiritual gifts, in their respective stations. (3-8) Exhortations to various duties. (9-16) And to peaceable conduct towards all men, with forbearance and benevolence. (17-21)   Commentary on Romans 12:1-2   (Read Romans 12:1-2)   The apostle having closed the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved